(Bloomberg) — Chinese tech stocks rallied by the most in three weeks, tracking its U.S. peers overnight, on expectations that easing U.S.-Sino trade tensions would help the battered sector.
Hong Kong’s Hang Seng Tech Index jumped as much as 4%, poised to snap two days of losses. Bilibili Inc. and Hua Hong Semiconductor Ltd. led the gains, each rising at least 8.3%. The broader Hang Seng Index advanced 1.9%.
Investors are starting to wade back into the tech sector after a combination of over-heated markets and Beijing’s regulatory crackdown sent the gauge tumbling over 40% from a February high.
A report that Treasury Secretary Janet Yellen said the U.S. expected China to meet its commitments under the Phase 1 trade agreement and could look at eventually lower tariffs in a reciprocal way also improved sentiment.
“Tech shares, which are high beta and closely tied to U.S.-China relations, are therefore getting a boost,” said Daniel So, strategist at CMB International Securities. “Traders will be looking ahead to U.S. Fed meeting this week and China’s sixth party plenum for more clues.”
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